Advertisement
YOU ARE HERE: LAT HomeCollections

Founder of healthcare lender National Century sentenced in fraud case

Lance Poulsen is sentenced to 30 years in prison in a $1.9-billion corporate fraud that eventually led to the bankruptcies of 275 hospitals, clinics and other healthcare providers, authorities say.

March 28, 2009|Associated Press

COLUMBUS, OHIO — A federal judge Friday sentenced the founder of a failed healthcare financing company to 30 years in prison in a $1.9-billion corporate fraud, the latest development in what prosecutors call the biggest fraud at a privately-held company in the U.S.

U.S. District Court Judge Algenon L. Marbley said Lance Poulsen of National Century Financial Enterprises was "the architect of a fraud of such magnitude that it would make a sophisticated analyst shudder."

National Century's collapse hastened the bankruptcies of 275 hospitals, clinics and other healthcare providers, authorities say. Victims included Newport Beach-based Pacific Investment Management Co., the world's largest bond fund. Pimco lost $283 million and Credit Suisse Group AG lost $257 million, prosecutors said.

Poulsen, 65, was convicted in October on 12 counts of securities fraud, wire fraud and money laundering. He declined Marbley's offer to make a statement following his sentencing.

Federal prosecutor Doug Squires called the lengthy sentence a landmark in white-collar crime prosecution.

Defense attorney Peter Anderson said Poulsen was disappointed and would appeal.

"We feel strongly that in this particular climate there is a strong likelihood of confusing business failures and assuming that the underlying cause is automatically criminal behavior," he said.

Advertisement
Los Angeles Times Articles
|
|
|